Oil Prices Down for the Week

Oil Prices Down for the Week
Both the WTI and Brent contracts are down approximately two percent.

“After an up-and-down week as well, November natural gas futures appear set for a gain on the week despite an inventory report that showed levels returning to their five-year average for the first time in two years,” Seng commented. Some early cold fronts entering the U.S. helped to support prices, though.”

Seng added the latest EIA Weekly Natural Gas Storage Report revealed:

  • An injection of 104 billion cubic feet (Bcf) last week against forecasts calling for 107 Bcf and a year-ago injection of 82 Bcf
  • 3.52 trillion cubic feet of total gas in inventory, up 494 Bcf (16 percent) year-on-year and 14 Bcf (0.4 percent) higher than the five-year average
  • 94 Bcf per day (Bcfd) of dry production compared to 81.5 Bcfd consumption, with a drop in the power sector offset by LNG exports
  • 5.3 Bcfd of gas exported to Mexico and 6.6 Bcfd in LNG exports

“Technically, November natural gas is trading right at its five-, 10- and 20-day moving averages,” concluded Seng. “Momentum indicators are showing a slightly oversold condition.”

To contact the author, email mveazey@rigzone.com.


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